Indeed, even as the corporate fight over Zee Entertainment Enterprises Limited (ZEEL) has arrived at the Bombay High Court, another Essel Group firm - Dish TV India - is preparing for a fight in court with YES Bank by wanting to move the National Company Law Tribunal to choose six of its chosen people on the leading body of the misfortune making organization.
While Dish TV said YES Bank has gained a 26% stake by summoning the swore portions of Essel Group advertiser, it additionally said YES Bank should make an open proposal to investors of the organization, as indicated by the Securities and Exchange Board of India (Sebi) takeover code. This, as YES Bank is trying to assume responsibility for the organization, said Dish TV.
“The Dish TV management has sent a detailed response to YES Bank. The ball is now in their court,” said a Dish TV source.
The promoters own a 6 per cent stake in the company. Both YES Bank and Dish TV declined to comment on their legal strategies.
Dish TV is also of the opinion that the nominee directors of YES Bank require clearance from other lenders, as well as security clearance from the Ministry of Information and Broadcasting.
Until such time, it will not be able to clear the extraordinary general meeting (EGM) notice.YES Bank had sought to appoint its nominees in the annual general meeting (AGM) of shareholders scheduled for 27 September but the AGM got postponed. A day before, on 26 September YES Bank had asked the company to call an EGM of shareholders to appoint its nominees and remove current Chief Executive Officer and Managing Director Jawahar Lal Goel and directors - Ashok Kurien, Rashmi Agarwal, Bhagwan Das Narang, and Shankar Agarwal - from the board. Kurien quit from the ZEEL board after demand from its largest shareholder Invesco cited corporate governance lapses.
YES Bank had earlier said that Dish TV’s current board was acting at the behest of promoters who hold only a 6 per cent stake in the company and approved an Rs. The 1,000-crore rights issue, despite its objections. YES Bank said Indian lenders have a 45 per cent stake in the company and that it is taking this step to protect the rights of all shareholders.
YES Bank has already approached Sebi and stock exchanges after the company did not take any action on 19 June when it sought to appoint its nominees and asked the company not to go ahead with the right issue.
In its communication to Dish TV, which was later filed with the stock exchanges, YES Bank said the board was acting in haste and taking steps to dilute their stake and hence, its demand to reconstitute the board.